Key facts
- Hundreds of thousands of London homes will miss out on a £100 energy handout.
- Eligibility is tied to council tax bands A-D, based on 1991 property values.
- Only 69% of London properties fall into council tax bands A-D.
- The scheme is expected to cost the government £2.6 billion.
Chancellor John Healey announced a
£100 energy handout for households in council tax bands A-D as part of his first budget, aiming to provide relief from rising energy bills. However, analysis by the Centre for London think tank revealed that hundreds of thousands of homes in London will miss out on this support. This is because eligibility is tied to council tax bands based on 1991 property values, which no longer accurately reflect current household incomes or financial need, particularly in London where property prices have surged.
The think tank highlighted that while some of London's poorest areas will see a high percentage of homes qualify, others with similar poverty levels will have significantly fewer eligible households. This has led to the scheme being described as a "postcode lottery" where support is determined by historic property valuations rather than actual hardship.